An Insurance Company Evaluates Many Numerical Variables About a Person

question 46

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.A person's age is an example of a _________ numerical variable.

---

Definitions:

Short Run

A period of time in economics during which at least one factor of production is fixed, limiting the capacity to adjust to changes in demand or market conditions.

Long Run

Describes a period in which all factors of production and costs are variable, allowing for the adjustment of all inputs and technology by firms.

Fixed Resource

Refers to a factor of production that remains constant, regardless of the level of output or activity in the short term.

Short-Run Adjustment

A temporary change in production or operation to respond to immediate changes in market or environmental conditions.